Benefits of having a DEMAT account

- Forgery – forging a copy of a paper is easy, using a demat account to store your shares electronically will help you avoid such a situation

- Loss – with our busy schedule, losing or misplacing a paper is commonplace. Using a demat account ensures that all your shares are stored in one place, safely

- Damage of paper or ink – over time, papers decay and inks erode. Using a demat account ensures there is a permanent, digital record of your transactions

In the demat form, certificates last forever and opening a Demat Account with Kotak Securities puts you at zero risk

• ZERO PAPERWORK:

When you use a demat account to buy and sell shares, all your certificates are in electronic form - thus transactions are hassle-free and less cumbersome. When you trade shares or other financial instruments, there is no need to actually hand over certificates to the buyer or seller.

After opening a demat account, you will have to deal with zero paperwork.

• ZERO COST:

Dealing in physical securities involves a lot of additional costs such as handling expenses, stamp duty as well as for safety. These are very hard to determine beforehand. All these are eliminated when maintaining a demat account. Since the brokerage charges you have to pay are detailed in advance, you pay zero hidden costs.

• ZERO TIME:

Buying and selling shares through your demat account in electronic format is instant. Earlier, exchanging physical certificates used to take weeks, if not months. This means transactions become seamless and inexpensive. And transactions require zero time.

Advantages of a Kotak Securities DEMAT account

Opening a demat account with Kotak Securities comes with the following great advantages:

Three-in-one account - DEMAT account, trading account and a bank account with Kotak Mahindra Bank, bundled together in one hassle-free account opening process - you will not have to open three accounts separately, but instead do so with a single application form. Also, you won’t have to manually transfer money to your trading account from your bank account. The required funds get credited automatically. (Alternately, you may also choose to open only demat and trading account with us, and continue to use your existing bank account for fund transfers)

Free Intraday Trading – A DEMAT account with Kotak Securities comes with free intraday trading. Which means, when you buy and sell your shares on the same day, you do not pay us any brokerage! (As per SEBI norms, brokerage cannot be zero, so we charge an almost negligible 1 paisa per trade)

Margin Facility – Usually, you buy shares using your own money. However, sometimes when you do not have sufficient funds in your demat account, some shares can look very tempting. Instead of passing on the shares, you can use our margin trading facility and borrow money from us to invest in the stocks.

How to open a DEMAT account – Procedure

Step 1: Fill up demat account opening form
Step 2: Submit Documents
Step 3: In-person Verification
Step 4: Once the process is complete you will be provided with the Account Number / ID

When you fill up the short, demat account opening form on our website, you will receive a call from a Kotak Securities customer care executive within 3 minutes on a working day. This call helps us understand:

a) If you have valid Pan Card and Aadhaar Card,
b) Your location, so we can assign a Relationship Manager (RM)

You then have to submit copies of these documents to our Relationship Manager, who will collect it from any location convenient for you. This also completes the mandatory in-person verification required to open a demat account.

On the completion of the above procedures, you will receive your Demat Account number and Client ID on your email as well as by post.

The demat account opening procedure at Kotak Securities is hassle-free and does not take more than a few days.

A Brief history of the DEMAT Account:

Just like the whole world, the stock markets too have undergone a significant change since the time of its inception.

When the Bombay Stock Exchange, the oldest in Asia, was founded in 1875, it was an open outcry floor trading exchange. This means traders would buy or sell stocks by verbally shouting prices on an open floor. Today, it is vastly different. It is an electronic system where you buy or sell stocks online.

Similarly, earlier, shares were physical receipts. On buying shares, you got a certificate. Over the years, people thought stock market trading was not for them because of the sheer paperwork involved in completing a transaction. Stock market settlements, wherein you receive shares if you buy or money if you sell them, were longer. In 1996, trading began on NSE for shares held in DEMAT account form. It was the beginning of a new paperless trading stock market trading environment. If you buy a share today, it gets credited to your account in two days. Today, shares get transferred to your DEMAT account.

You cannot trade in the stock market without a DEMAT account.(Open Demat Account Today)›

Here are some things to know about DEMAT account:

ELECTRONIC CERTIFICATE

There are three key requisites for trading in the stock market – a bank savings account, trading account and a DEMAT account. When you buy a share, you own a portion of a company’s assets. To prove your ownership, you are given a certificate. Today, this certificate is electronically available in your DEMAT account or DEMAT accounterialized account.

CENTRAL DEPOSITORY

For this reason, the first step of trading in the equity market is creation of a DEMAT account. There is a central database of all DEMAT accounts. It is called a depository. There are two depositories – CDSL and NSDL.

DEPOSITORY PARTICIPANTS

Banks, brokers and financial institutions are empowered to offer DEMAT account services. They act as the intermediary between the central depository and the investor, and are called depository participants (DPs). This means, CDSL and NSDL hold details of your shareholding on your behalf, just like banks hold your money in different kinds of accounts.

TRANSACTION IDENTIFICATION

Just like the DEMAT account, a trading account is a must for investing in the stock market. You register for a trading account with a stock broking firm. Each account comes with a unique trading ID, which is used for conducting transactions. To conduct a trade, you deposit some money in your trading account. This is linked to your DEMAT account. Using the money in your account, you place an order for a stock. Once the order is processed, the stock exchange identifies that the order belongs to you using your unique trading ID. It then forwards the shares to your DEMAT account.

PORTFOLIO HOLDING

At any time, your DEMAT account reflects the details of your portfolio. This includes stocks, bonds, mutual fund units, Exchange Traded Funds (ETFs), as well as government securities in electronic form. So, whenever you invest by buying stocks, it will be credited to your DEMAT account. Similarly, if you sell any of your holdings, these will be removed from your account.

NO MINIMUM BALANCE

A bank account requires a minimum balance. However, this is not so for DEMAT Account. There is no minimum number of securities required to keep the account rolling.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. Attention Investors Prevent Unauthorized Transactions in your demat / trading account --> Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors. Circular No.: NSDL/POLICY/2014/0094, NSE/INSP/27436, BSE - 20140901-21

Kindly note that as per NSE circulars nos: NSE/INVG/36333 dated November 17, 2017, NSE/INVG/37765 dated May 15.2018 and BSE circular nos: 20171117-18 dated November 17, 2017, 20180515-39 dated May 15.2018, trading in securities in which unsolicited messages are being circulated is restricted. The list of such stocks are available on the website of NSE & BSE. In case of any queries, request you to kindly get in touch with Customer Service on 18002099191/9292

Kotak Securities Ltd. bearing licence no. CA0268 is a Corporate Agent of Kotak Mahindra Old Mutual Life Insurance Ltd. We have taken reasonable measures to protect security and confidentiality of the Customer Information.

The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time.
The Stock Exchange, Mumbai is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.

That by submitting the above mentioned details, you are authorising Kotak Securities & its sub-brokers & agents to call you and send promotional communication even though you may be registered under DNC.